May 6, 2022
The textile scheme is expected to employ 2,45,362 people
About 61 of the 67 applicants for man-made fibre (MMF) apparel, MMF fabric, and technical textiles were approved during the initial announcement
A total of 14 companies are approved under part 1 of the scheme and 60 companies are under the ambit of part 2
The government may invite applications for an updated version of the scheme for apparel and garments that has a lower investment criteria
The Textile Ministry has approved three more companies under the production-linked incentive (PLI) scheme for textiles, taking up the total number of selected applicants to 64. The approved 64 applicants have proposed a total investment of INR 19,798 crore, with a projected turnover of INR 1,93,926 crore. The textile scheme is expected to employ 2,45,362 people. It must be noted that 61 of the 67 applicants for MMF apparel, MMF fabric, and technical textiles were approved during the initial announcement
Of the newly approved companies, RSWM Ltd, one of the largest yarn manufacturing companies in the country fell under part 1 of the scheme. The minimum investment required under this part is INR 300 crore with the minimum turnover required to avail incentive is at INR 600 crore. The other two approved companies – Birla Fashion and Retail Ltd and Pan Healthcare Pvt Ltd fall under part 2 of the scheme. The requirements for part two are a minimum investment of INR 100 crore with a minimum turnover required to avail of the incentive being INR 200 crore.
A total of 14 companies are approved under part 1 of the scheme and 60 companies are under the ambit of part 2.
The Textile Ministry is projected to use about INR 6,600 crore for the current investors
It is expected that the government may invite applications for an updated version of the PLI scheme, for apparel and garments that have lower investment criteria. This is to ensure that the entirety of the INR 10,683 crore allocated is fully utilised and benefits smaller players as well.